Labor relation is a step-by-step process that begins with the unionization of employees, moves through dispute/conflict to collective bargaining, to settlement of conflict, and finally ends with administration of contract.
1. Unionization Of Employees
The first step of labor relation is unionization of employees. A trade union is defined as an organization of employees that is formed to protect and promote the interest and welfare of employees in the organization. It is continuing and long-term process that is targeted to form and maintain specific purpose of blue collar workers. It is a voluntary organization of workers that protects their interests through collective bargaining.
2. Dispute Or Conflict
Usually, employers want to avoid trade unions in their organizations. Therefore, when the unions are formed, they create disputes or conflicts in the work environment. Because trade unions try to fulfill employees' needs first rather than the organizational objectives. Besides, trade unions have been severely criticized, particularly by the employers, that is why the even resist the formation of such unions in the organization. Hence, a dispute will be created after the formation of trade union.
3. Collective Bargaining
Collective bargaining is a mechanism through which the essential conditions of employment are determined bu negotiating between employees' union and management. It is a negotiation about working terms and conditions between an employer and the trade unions. The negotiated agreement serves as a code defining the rights and duties of each employee. When disputes are conflicts are arisen in the work environment, such hurdles are solved through collective bargaining between concerned parities. hence, it is a next step of employee relation process.
4. Settlement Of Contract
In this step of labor relation, the disputes or conflicts are settled through a negotiation. Both of the conflicting parties (employees and employers) agree upon a consensus and sign on a contract to settle the existing problem. Hence, it serves a way for future disputes to be settled under a mechanism. This brings an effective work environment in the actual workplace.
5. Contract Administration
This is the last step of labor relation process in which a monitoring team is formed to monitor the effectiveness of signed contract whether it is followed by the disputing parties. This means, a team is formed from proportionate representation of both the disputing parties to monitor the execution of settlement of contract.
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